Yes, we have gone there for a late breakfast and were visited by all the characters. If anything, I think you get to spend a little more time with characters as the restaurant begins to empty out.
We've had the 10:55 reservation and not been seated until 11:30. The characters hang out until everyone has finished. I agree that I think you get more time and its much quieter as the restaurant empties out.
Not 'Ohana but did a very late breakfast at 1900 Park Fare, we were one of the last groups there, Alice and the Mad Hatter spent a lot of time hanging out with us.
We eat at the last breakfast seating frequently. The characters will tour the room until every family has visited with them. Food is, usually, kept fresh (although 'Ohana is the only breakfast where they said they were out of some foods when we asked for seconds, but I am unsure if that is uncommon or not).
I have found the meal itself usually takes around an hour, but I have always had to wait at O'hana, usually 20-30 minutes. So I think your estimate of 12:30 is pretty good.
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